China orders airlines to suspend Boeing Jet deliveries in the middle of the trade war Blogging Sole

Boeing 737 The Max fuselages are seated on wagons during an ongoing strike by business workers in Seattle, Washington, United States, October 30, 2024. - Reuters
Boeing 737 The Max fuselages sit on wagons during a strike in progress by the company factory workers in Seattle, Washington, United States, October 30, 2024. – Reuters
  • Boeing shares actions while Airbus has a strong position in China.
  • Chinese carriers asked to interrupt American plane equipment purchases.
  • Beijing Mulls helps airlines renting Boeing planes faced with higher costs.

China has ordered its airlines not to take other Boeing Jets deliveries in response to the American decision to impose 145% prices on Chinese products, Bloomberg News Reported Tuesday, citing people familiar with the issue.

Boeing’s actions – which consider China one of its main growth markets and where Rival Airbus has a dominant position – has decreased by 0.5% in midday traffic.

World aerospace industry is trained in a trade war led by the United States, with planematic plants, airlines and suppliers examining contracts of billions of dollars, after the American supplier Howmet Aerospace triggered a debate on which should bear the cost of tariffs.

The confusion on the evolution of the prices could leave aircraft deliveries in the limbo, some CEOs of airlines claiming that they would postpone the delivery of planes rather than paying tasks.

The first three Chinese airlines – Air China, China Eastern Airlines and China Southern Airlines – had planned to take delivery of 45, 53 and 81 Boeing aircraft between 2025 and 2027 respectively.

Beijing also asked that Chinese carriers interrupt purchases of equipment and parts related to American companies, the Bloomberg According to the report.

Reuters has not been able to independently confirm the report.

Two sources in the aerospace industry have been told Reuters They had not been alerted independently to a general ban on China on American parts of planes.

Analysts said that a short -term intervention of deliveries in China would not have a major impact on Boeing, because the plan of the plan of the plan of the Map could redirect these jets to other airlines and because Iirbus does not have the capacity to provide the country alone.

China would have more difficulty prohibiting imports of new American parts to support its fleet of existing planes, including the C919 of China.

“If China stops buying aircraft components in the United States, the C919 program is interrupted or dead,” wrote Ron Epstein, analyst of Bank of America, in a note to customers.

The Chinese government plans to provide assistance to airlines that rent Boeing Jets and face higher costs, Bloomberg News reported.

It is China that the 737 Maximum Boeing de Boeing planes after two fatal accidents in 2018 and 2019 killed nearly 350 people. China also suspended most of the jet commands and deliveries in 2019.

Boeing refused to comment.

The judgment of deliveries to China marks another setback for the plan of the plant plan, which sails in a slow recovery after a difficult year marked by a labor strike, an improved regulatory examination and persistent disturbances of the supply chain.

Beijing’s action follows its decision last week to increase the samples from American imports at 125% in retaliation against American prices, which would considerably increase the cost of Boeing jets for Chinese carriers and potentially lead airlines to consider alternatives such as Airbus and the comac of domestic players.

Boeing’s actions have lost more than a third of their value from an outdoor door panel eruption on a brand new Jet Max 9 last year, which sparked a new wave of challenges for the company.

The climbing of tit-form-tat prices between the two largest economies in the world is likely to bring trade in goods between the two countries to stop. This trade was estimated at more than $ 650 billion in 2024.

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